GameOn couple arrested for $60M investor fraud

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Authorities Arrest GameOn Technology Founder and Attorney for Alleged Fraud

Authorities yesterday arrested GameOn Technology founder Alexander Charles Beckman and attorney Valerie Lau Beckman (a married couple) for allegedly defrauding investors of $60 million.

Indictment Details Alleged Fraud Scheme

In a 25-count indictment, the U.S. Department of Justice said the couple allegedly falsified dozens of bank statements and audit reports to defraud GameOn investors. The alleged fraud spanned six years.

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Accusations Against Beckman and Lau

Beckman, the former CEO of GameOn, resigned last year after allegations surfaced that $11 million went missing from the company’s bank account, leaving it with just 37 cents. The company shut down in July 2024, laying off staff. Authorities charged Beckman and attorney Valerie Lau Beckman with conspiracy, wire fraud, securities fraud, identity theft, and obstruction of justice.

Allegations of Fraudulent Activities

According to the indictment, Beckman and Lau conspired to defraud GameOn investors by falsifying financial documents. GameOn, based in San Francisco, offered a chatbot software program with artificial intelligence capabilities, serving clients in professional sports leagues and luxury retail brands. Over six years, Beckman raised over $60 million from investors, while Lau, as the company’s attorney, was involved in corporate matters.

Personal Use of Investor Funds

The couple allegedly used over $4 million of GameOn investor funds for personal expenses, such as buying homes in San Francisco, paying for private schools, and financing their wedding venue.

Legal Consequences and Responses

First assistant United States attorney Patrick D. Robbins emphasized the impact of fraud on financial markets and investors, while FBI Acting Special Agent in Charge Dan Costin underscored the bureau’s commitment to transparency. Beckman’s misrepresentation of financial data and use of false identities for documents further exacerbated the alleged scheme.

Additional Criminal Activities

Beckman and Lau are accused of fabricating audit reports and using reputable firms’ names without authorization. Lau’s involvement in creating fake financial statements and obstructing justice by lying to her employer and attempting to delete evidence added to the charges against them.

Legal Proceedings and Maximum Penalties

Beckman and Lau face significant prison time if convicted of the charges. The indictment outlines the potential sentences for various offenses, including wire fraud, securities fraud, bank fraud, and identity theft. The legal team prosecuting the case aims to hold the defendants accountable for their actions.

GameOn Technology rebranded as On in December 2023.

Conclusion

Beckman and Lau’s arrest and the subsequent legal proceedings shed light on the consequences of financial fraud. The case serves as a cautionary tale for individuals and companies engaging in deceptive practices that harm investors and financial markets.

FAQs

Q: What were Beckman and Lau charged with?

A: Beckman and Lau were charged with conspiracy, wire fraud, securities fraud, identity theft, and obstruction of justice.

Q: What was the alleged amount defrauded from investors?

A: The couple allegedly defrauded investors of $60 million.

Q: What were some of the personal expenses the couple used investor funds for?

A: The couple used over $4 million of GameOn investor funds for personal expenses, including buying homes in San Francisco and financing their wedding venue.


Credit: venturebeat.com

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